share transaction in tally accounting

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mukesh (Querist)
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22 February 2011 please help - i have a client who has mad e some share transactions and i have put down in tally accounting software 9. i want to know how to correct accounting of share transaction in tally 9. i have generated shares as quantity detail and made sales and purchase entry but i am dissatisfied of that entry please tell or teach me how to enter correctly. if any answer and want to sent me my email id is mjsolanki74@yahoo.in

Vikash Maheshwari

Vikash Maheshwari (Expert)
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19 November 2011 Firstly, create a company as "Accounts with Inventory" Option.
Create following ledger accounts in tally
1. Purchase of Shares A/c'
2. Sale of Shares A/c
(Open the above accounts under Purchase and Sale respy)
3. Speculation Purchase A/c
4. Speculation Sales A/c
(Open the above accounts as Direct Exps. or Income head. The head here will not make any difference as at the end of the year we will be netting off the two speculation account)
For Inventory of Shares follow following steps.
1. Open two groups:
i. Speculative Transactions Stock
ii. Delivery Based Transaction Stock
Mention each shares under two inventory groups by adding the same as stock item. CAUTION: Here make sure that you open two seperate accounts for the same stock if you are dealing in both Delivery Transactions and Speculative Transaction. E.g. Share of TISCO is defined in tally as TISCO - D and TISCO - S where D and S suggest that the entry in the inventory is for Delivery (D) and for Speculative (S) Transaction.
After above steps start entering entry BILL WISE only in JOURNAL mode.
At the end of the year close any one speculation account by transfering the balance to other speculation account. Balance either speculation profit or loss can be used for seperate reporting for Income Tax Purpose.
Hope this points will help you in accounting share transactions in Tally.